Author: root

Why RTO under lock and key is good news for you, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


NEW DELHI: On Wednesday morning, chief minister Arvind Kejriwal put a lock on the large gates of the Regional Transport Office (RTO) at IP Depot to open a “faceless services” for Delhiites, thus becoming the first state in the country to provide online facilities on such a large scale.

Starting with three services on a trial basis in February, 33 major transport-related facilities have now become online covering almost 95% of all applications that Delhi government’s transport department receives. Through these services, including an e-sign facility, applicants would be able to save time and money spent on visiting the RTOs.

Delhi has also become the first state to provide online learner’s licence through an AI-based facial recognition software for ensuring maximum security supported by an Aadhaar-based authentication system.

After putting a lock on the New Delhi zone RTO, Kejriwal said there used to be a time when getting a driving licence meant intense discussion on whom to approach for reference or which agent to hire. “People would stand in lines and objections would be made in their application repeatedly. Eventually, they would get tired and get an agent to do it,” he added.

“Today, what we are doing signifies the India of the 21st century. It is a massive step along the direction of technological revolution. Offices and files are now completely digitised. Even the 1076 agent won’t come to your doorstep for any papers. Now, you just have to login to your computer and get all your work done. All services of the transport department are now digital. There is no need to collect documents and stand in lines, no need to take a holiday from work and no need to hire a middleman or agent,” said the CM.

Transport minister Kailash Gahlot said, “Faceless means that now no applicant needs to come to the MLO or officer in any zonal office of the transport department. Whether you are at home, office or cyber cafe, you can do all the things that you used to by going to the office at your convenience.”

Gahlot added that four RTOs — IP Depot, Vasant Vihar, Sarai Kale Khan and Janakpuri — were closed on Wednesday, but helpdesks would be available to ensure a smooth transition. He said 3.5 lakh faceless service requests were received since February 19 and the success rate of approval so far was more than 80% and rejection rate less than 1%.

Meanwhile, the transport department has partnered with ICICI Bank to provide automatic termination of hypothecation on full repayment of loan. At present, vehicle owners have to get a NOC from the bank to get their hypothecation terminated. More banks are expected to come on-board and provide the service soon.

Nearly 32.6 lakh vehicles would benefit from this initiative. The transport department said it had developed a software through NIC for API-based integration of hypothecation data with the Centre’s Vahan software for issuance of automatic online NOC by banks.

“We’re happy to partner with ICICI on this ambitious project. HP addition and termination are one of our most availed of services and its automation, under the leadership of CM Arvind Kejriwal, will set a benchmark in simplifying service delivery. I urge more banks to join hands with us,” Gahlot tweeted.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , ,

Sanjiv Bajaj, Bajaj Finserv, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


It is a question of how we as the private sector keep working with the government, keep pushing them to do more and they do the same with us. That is how this country will grow, said Sanjiv Bajaj, Chairman & MD, Bajaj Finserv on ET Now. Edited excerpts:

What are the pain points for Bajaj Finserv?
It is actually a combination of things, but at the heart of it is a continued nervousness on the pandemic. To be fair, the second wave got us all by surprise. It was a devastating wave both for lives and livelihoods. What it also does is through all the lockdowns that we saw, with more localised lockdowns compared to the first wave, it starts disrupting the supply chain again. And each time you restart it, it takes that much longer.

If you look at small businesses, through the first wave many of them shutdown. They somehow managed to put some savings to get started, they have to again shutdown in the second wave. So, that is where there is this nervousness about the third wave and that is why I think government and private sector are pushing people to get vaccinated. We are helping them do that. We are still propagating all the safety-related measures that we need to take so that we have a milder third wave, if at all it comes.

As a result of that, lives get protected and we stay open for business. For example, I am seeing on the consumer side, demand in July already started picking up early August; first 10 days of August. It is looking good. If this trend continues in the next few months, we could do very well for many sectors to be very close to pre-COVID levels. But if we get hit by a third wave again, the whole thing goes down and that is where part of the nervousness comes.

Would you say therefore the financials, the banks, the NBFCs are more nervous?
Again, this differs from case to case. Last year, in the first wave itself, a number of private banks, NBFCs went and raise outside capital and they flushed out possible NPAs early on. You could see that in their P&Ls and they are rearing to go now. You are starting to see some of them do that.

On the other hand, there were those that were slow at raising capital and then it became too late to raise capital. They have not yet flushed their NPAs out and as a result of that they will be slower to pick up. So, it is going to be a bit of a mixed bag. Overall, given that the pace of growth is also not suddenly going to accelerate to a level where capital is not available, I do not think capital will be an issue in supporting demand and growth.

How did you read the statement from the Prime Minister saying that India is one of the most competitive when it comes to tax? Are you reading that as a sign that it is going to stay as status quo next year as well?
I definitely hope it does and this goes towards a much larger foundation that the Prime Minister and the government is talking about which is just improving ease of doing business. So, it is not just taxation when he talked about how in the Companies Act the number of laws is going to be criminalised, he talked about the repeal on the Retrospective Tax Amendment. He talked about opening up a whole bunch of strategic sectors which were earlier only for the public sector, whether it was defence.

What he is trying to say is that we are creating all the elements to take India into that next big exponential growth jump and I hope that you as the private sector will leverage that opportunity and have confidence in that growth. A lot of the proof is in the pudding. I think it is equally important to say the LIC IPO should happen on time.

The privatisation on the public sector, couple of the banks, the insurance companies should happen. This will then create the traditional confidence. It is not a question of saying that I have done three things or you do three things, it is a question of how we as a private sector keep working with the government, keep pushing them to do more and they do the same with us. That is how this country will grow.

One big difference that was there between wave one and wave two was inflation. How do you see that hitting the economy at this juncture?
If you look at not just India, but at all the world governments, central banks have to make choices. Those choices are made in a volatile environment because of the pandemic. So, when you look at inflation today, other than that from something like oil, the rest of it could very well be because of supply chain disturbances that have happened. As we are hearing, central banks from all over the world say that those could be transient.

A much more important focus is on growth with every country saying we need to grow ourselves out of it and you have to make some choices. If you grow with investments going into the right areas, then that becomes productive growth. Two, that should bring inflation down. Three, if the pandemic comes in good control going forward and supply chains go back to their more efficient ways, then the transient impact also should go away. That is what we can hope for.

So, it is not as big an issue as we thought a couple of months ago?
I do not think it is a big issue at all. If you read what some of the well-known economists even talk about, it is almost an expected outcome of the current monetary policy. It should not be surprising that in a situation of a accommodative monetary policy with disturbances in the economy due to the pandemic, this is almost an expected outcome. Why should we be worried about it as long as we are keeping our eye on it, as long as we are seeing growth coming back.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

2 Stocks ICICI Direct Recommends To Buy For Gains Up To 17%

Personal Finance

[ad_1]

Read More/Less


1. Globus Spirits: ‘Buy’ Global Spirits For Gains Over 17%

ICICI Direct has maintained its ‘Buy’ rating on the stock of Globus Spirits for a target of Rs. 1050 to be hit in the short term of 12 months. Globus Spirits’ scrip last traded at a price of Rs. 893, hence the given target implies an upside potential of 17.58 percent. The price of the scrip at the time of recommendation was Rs. 853.55.

Globus Spirits is the largest grain based ENA manufacturer in India The company also supplies Indian made Indian liquor (IMIL) and premium IMFL in India.

What will aid Globus Spirits’ stock performance?

GSL has a product range across these two ends of liquor segment (hour glass shaped consumption), including manufacturing extra neutral alcohol (ENA) to contract bottling of Indian made foreign liquor (IMFL), to marketing, selling IMIL, several by-products, says the brokerage house.

• Additionally, Globus Spirits captures remium price points in IMIL space via higher strength liquor.

• The centre expedited 20% blending target to 2025, leading to higher diversion of ENA towards ethanol.

• The company is nearing net-debt free position with return ratios reaching 25%+ levels

• Globus Spirits’ is benefitting from the changes in the liquor industry dynamics including inflation in ENA prices and growth in IMIL aided by better quality, higher strength and attractive product positioning.

The brokerage values the stock of Globus Spirits at Rs.1050 i.e. 11x P/E on FY23E EPS. The company’s margin grew for the Q1Fy22 period driven by IMIL and ethanol sales. Consequently, its PAT increased 10% QoQ to Rs. 56 crore.

Last traded price of Globus Spirits Rs. 893
Target Rs. 1050
Potential upside 17.58%
In crores FY19 FY20 FY21E “5 Year CAGR (FY16-21P)” FY22E FY23E 2 Year CAGR
Net Sales 985.9 1168.8 1230.8 11.00% 1433.3 1762.7 19.70%
EBITDA 88.3 124.7 254.7 22.70% 336.8 414.2 27.50%
PAT 24.3 49.9 140.8 32.50% 213.6 272.2 39.00%
P/E (x) 100.6 49 17.4 11.5 9
M.Cap/Sales (x) 2.5 2.1 2 1.7 1.4
RoCE (%) 9.5 14.5 28 31.8 31
RoE (%) 6.1 11.2 24.1 26.9 25.6

Alternate Stock Idea: ICICI Direct is also positive on United Spirits. The subsidiary of Diageo Plc., United Spirits is the country’s leading alcoholic beverage company. ICICI Direct has given a ‘Buy’ rating on the stock, with a target price of Rs. 770. The stock last traded at a price of Rs. 654 per share on the NSE.

2. CAMS or Computer Age Management Services: ‘Buy' CAMS for gains over 12%

2. CAMS or Computer Age Management Services: ‘Buy’ CAMS for gains over 12%

ICICI Direct has maintained its ‘Buy’ rating on the mutual fund transfer agency, CAMS, for a target price of Rs. 3500, implying gains of over 12% from the last traded price of Rs. 3111. At the time of recommendation, the scrip quoted a price of Rs. 3108.8.

CAMS is the leading mutual fund registrar and transfer agent (RTA) commanding a market share of approximately 70%. The company has a track record of operating with high margins (of over 30%) and return ratios.

Rationale for a ‘Buy’ on CAMS

• Underpenetrated markets offer structural growth opportunity to the company.

• Other key strengths include technological know-how, market leadership and long- standing client relationship.

• Also pick up in non-mutual fund business as well as launch of new products will drive revenue growth and diversification.

• Steady growth & consistent elevated margin to aid valuation.

In the just ended quarter, the company posted steady sequential performance. Revenue from operations rose 35% YoY led by growth in AUM.

ICICI Direct values CAMS at ~56x FY23E EPS and revise our target price from Rs. 2800 to Rs. 3500 per share.

CAMS last traded price Rs. 3111
Target Rs. 3500
Potential gains >12%
Stock performance over last 9 months 2.5 times over the past nine months (from close to Rs. 1300 in November 2020 to Rs. 3,250 in August 2021).
(|n crore) FY19 FY20 FY21 “4 year CAGR (FY17-FY21)” FY22E FY23E “2 year CAGR(FY21-23E)”
Revenue 711.7 721.3 735.3 2.70% 867.9 964.9 14.60%
EBITDA 217.9 286.6 296 12.30% 382.4 432 20.80%
PAT 135.2 172.4 205.3 8.60% 265.9 303.7 21.60%
EPS (|) 27.7 35.3 42.1 54.4 62.1
Managed AUM (| lakh crore) 15.8 18.2 20 23.6 27.3
RoCE (%) 41.90% 46.00% 65.30% 56.60% 56.10%
P/E (x) 109.7 86 72.3 55.9 48.9

Alternate Stock Idea: Other than CAMS, ICICI Direct is positive on Nippon Life. “It offers a play on under-penetrated asset management industry coupled with strong distribution and focused approach on active & passive AUM”, says the brokerage. The company suggest to buy the scrip for a target price of Rs. 480, as against the stock’s last trading price of Rs. 384.30 per share.

Disclaimer:

Disclaimer:

Stock market investments are risky. Better identify your risk potential and investment goals before parking your surplus into equities. Also, the investments listed above are taken from brokerage report of ICICI Direct and need not be construed as investment advice. The company nor the author will be held responsible for any decision taken based on this story.

GoodReturns.in



[ad_2]

CLICK HERE TO APPLY

Leave a comment

Two new bidders for Lavasa, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


Creditors to the former Hindustan Construction Company (HCC) controlled Lavasa township have received two bids for their Rs 6,000 crore loans outstanding in a third round of bids for the debt-laden company.

Two bids from Alchemist ARC president Srishti Dhir along with her brother Madhav Dhir and little known Darwin Projects are being considered by lenders, three people familiar with the bids said.

Srishti Dhir confirmed that she has bid in her personal capacity in association with her brother Madhav. Srishti is the elder child of Alchemist ARC promoter Alok Dhir. Darwin Projects could not be reached.

“Both bids are on the condition that the project will receive environmental clearance that has been the main reason this account turned into an NPA. It makes them weak. Creditors will consider them but the conditional nature and huge haircut make the bids unattractive in the present form,” said one of the three persons cited above.

Darwin has bid Rs 750 crore while the Dhirs have bid Rs 550 crore, which means the bids are at 88% and 91% haircuts, respectively. The upfront cash offered by both bidders is less than Rs 100 crore, making it less attractive for creditors.

ET’s queries to Lavasa’s Insolvency Resolution Professional (IRP) Shailesh Verma remained unanswered.

Lenders met on Wednesday to consider the bids and are most likely to ask both bidders to reconsider their conditions, put more cash on the table and compress their future payment timelines after taking views of other lenders in the coming days.

Union Bank of India (UBI) is the lead lender in the project with an outstanding loan of Rs 600 crore. Other lenders include Bank of India, Axis Bank, Punjab National Bank and State Bank of India. L&T Finance, the NBFC from the engineering to IT L&T group, is also a creditor along with asset reconstruction companies Arcil, Edelweiss, and Acre.

Lenders have been frustrated with the multiple pullbacks by bidders since the account was taken to the National Company Law Tribunal (NCLT) in 2018.

In November last year, ET reported that three bids were being considered including one from a Pune-based realty developer Anirudh Deshpande and a Dubai-based fund. Before that, Haldiram Snacks and Oberoi Realty had bid in late 2019, but pulled back later citing uncertainties due to the Covid 19 pandemic.

Lenders do not have high hopes from current bids. “Environmental clearance is the main deterrent for this project and until it gets resolved, things will not move,” a second person cited above said.

Srishti Dhir acknowledged the challenge facing the project but expressed confidence that she will be able to work with the authorities to sort things out. Besides completing the existing flats and villas, Dhir plans to also launch a hotel in the property in partnership with a reputed brand.

It remains to be seen whether creditors will want to settle this account through the NCLT as Lavasa is also earmarked to be sold to the National Asset Reconstruction Company (NARC).

Set up in 2000 by the Ajit Gulabchand-led Hindustan Construction Company (HCC), Lavasa was developing the country’s first privately developed city spread over 20,000 acres in Mulshi and Velhe areas in Maharasthra’s Pune district.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

Canara Bank Revises Interest Rates On Fixed Deposit: Check Current Rates Here

Personal Finance

[ad_1]

Read More/Less


Investment

oi-Vipul Das

|

Canara Bank, a public sector lender, has revised interest rates on fixed deposits of less than Rs 2 crore with effect from 09.08.2021. Canara Bank will now provide a 2.90 percent interest rate on term deposits with a maturity period of 7-45 days following the latest adjustment. The bank will provide 3.9, 3.95, and 4.40 percent interest rates on FDs with maturity periods of 46-90 days, 91 days to 179 days, and 180 days to less than 1 year, respectively. The bank is currently offering a 5.10 percent interest rate on deposits maturing in one year to less than three years. Canara Bank is giving a 5.25 percent interest rate on deposits maturing in 3 years or less than 5 years, and 5 years or up to 10 years. Canara Bank offers Canara Unique Retail Term Deposit scheme of “1111 Days” with an additional rate of interest of 0.10% over and above the rate for the tenor of the deposit, on these deposits the bank is now promising an interest rate of 5.35% to the general public and 5.85% to senior citizens.

Canara Bank FD Rates For The General Public

Canara Bank FD Rates For The General Public

For a deposit amount of less than Rs 2 Cr, Canara Bank is now promising the following interest rates to the general public.

Term Deposits (All Maturities) Regular FD Rates (% p.a.) Annualised Interest yield (% p.a.)
7 days to 45 days 2.90 2.93%
46 days to 90 days 3.90 3.96%
91 days to 179 days 3.95 4.01%
180 days to less than 1 Year 4.40 4.47%
1 year only 5.10 5.20%
Above 1 year to less than 2 years 5.10 5.20%
2 years & above to less than 3 years 5.10 5.20%
3 years & above to less than 5 years 5.25 5.35%
Canara Unique “1111 Days” 5.35 5.46%
5 years & above to 10 Years 5.25 5.35%
Source: Bank Website

Canara Bank FD Rates For Senior Citizens

Canara Bank FD Rates For Senior Citizens

Senior citizens will continue to get an additional interest rate of 0.50% compared to the general public. After the most recent revision, Canara Bank is now offering the following interest rates to senior citizens.

Term Deposits (All Maturities) Regular FD Rates (% p.a.) Annualised Interest yield (% p.a.)
7 days to 45 days 2.90 2.93%
46 days to 90 days 3.90 3.96%
91 days to 179 days 3.95 4.01%
180 days to less than 1 Year 4.90 4.99%
1 year only 5.60 5.72%
Above 1 year to less than 2 years 5.60 5.72%
2 years & above to less than 3 years 5.60 5.72%
3 years & above to less than 5 years 5.75 5.88%
Canara Unique “1111 Days” 5.85 5.98%
5 years & above to 10 Years 5.75 5.88%
Source: Bank Website

Canara Bank Overdue Deposits

Canara Bank Overdue Deposits

Interest rates on overdue deposits have also been adjusted by Canara Bank. According to the bank “If a Domestic Term Deposit matures and proceeds are unpaid, the amount left unclaimed with the Bank shall attract rate of interest as applicable to saving account or the contracted rate of interest on the matured Term Deposit, whichever is lower.”

Term Deposits (All Maturities) Callable Non-Callable ++
Rate of Interest (% p.a.) Annualised Interest yield (% p.a.) Rate of Interest (% p.a.) Annualised Interest yield (% p.a.)
7 days to 45 days 2.9 2.93% – NA – @
46 days to 90 days 3.1 3.14% 3.1 3.14%
91 days to 179 days 3.25 3.29% 3.25 3.29%
180 days to less than 1 Year 3.25 3.29% 3.25 3.29%
1 year only 3.65 3.70% 3.65 3.70%
Above 1 year to less than 2 years 3.65 3.70% 3.65 3.70%
2 years & above to less than 3 years 3.65 3.70% 3.65 3.70%
3 years & above to less than 5 years 3.4 3.44 3.4 3.44%
5 years & above to 10 Years 3.4 3.44 No Quotes @
Source: Bank Website

Story first published: Thursday, August 12, 2021, 11:43 [IST]



[ad_2]

CLICK HERE TO APPLY

Leave a comment

Buy This Stock For A 7-8% Dividend Yield And 15% Returns, Says Motilal Oswal

Personal Finance

[ad_1]

Read More/Less


Power Grid – Dividend Yield of 7% to 8%

According to Motilal Oswal Power Grid has won Rs 90-100 billion of awards during the past 8-9 months, which is a positive sign, given a declining order book.

“The capital expenditure trajectory is on a decline, and with proceeds from InvIT, we see strong scope for higher dividends. Valuations at 1.6x FY22E P/BV and a 7-8% FY22E dividend yield remain attractive for a company with a steady return on equity of 18%. We maintain our Buy rating with a DCF-based target price of Rs 205 per share,” the brokerage has said.

Power Grid’s standalone net rose 3 times year on year to Rs 60.8 billion due to one-offs related to a Rs 31.7 billion gain from the sale of assets to InvIT and Rs 2.3 billion of income – difference in final and provisional tariff, and Rs 0.8 billion impact of a rebate in 1QFY21,” the brokerage has said.

Government distribution reform scheme may help Power Grid

Government distribution reform scheme may help Power Grid

According to Motilal Oswal the company is looking at opportunities ushered by the government’s distribution reform schemes. The company sees an incremental Rs 2 trillion of funding/investment needs for power distribution companies for upgrade of their distribution network and Smart Meters. It is looking to engage with power distribution companies for the same and provide technical solutions and investment support.

Power Grid expects capitalization in FY22 to be at Rs 150 billion, with a capital expenditure of Rs 75 billion. For FY23, it expects capitalization to be at Rs 120-150 billion, with a capital expenditure of Rs 75-100 billion, the brokerage has said.

Reasons to buy the stock of Power Grid

Reasons to buy the stock of Power Grid

According to Motilal Oswal, the management sees Rs 108 billion of upcoming opportunities in inter- and intrastate works. Transmission schemes are being planned in Leh, Gujarat, and Rajasthan, with a total potential cost of Rs 400 billion. DPR for Transmission works at Leh has been prepared and submitted.

“We see additional distribution potential from share in dividends from Special Purpose vehicles of the InvIT, sale of 26% stake in five Special Purpose vehicles, and further transfer of assets to the InvIT.

Given a 7-8% dividend yield, backed by steady earnings growth (5-6% CAGR) and Return On Equity of 18%, Power Grid remains attractively valued at 1.6 times FY22E price to book value. We maintain our Buy rating with a DCF-based price target of Rs 205 per share,” the brokerage has said.

Disclaimer

Disclaimer

Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage houses are not liable for any losses caused as a result of decisions based on the article.



[ad_2]

CLICK HERE TO APPLY

Leave a comment

ATM companies wary of RBI’s Rs 10,000 cash-out fine, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


There is a mixed reaction to the move by the Reserve Bank of India (RBI) to penalise banks Rs 10,000 for each instance of an ATM being out of cash for 10 hours. ATM operators (known in the industry as managed service providers, or MSPs) and cash-in-transit companies are throwing up their hands, stating that they will not bear the penalty.

In a circular to banks this week, the RBI said that they should monitor the availability of cash in ATMs and ensure that there are no cash-outs. The circular said that banks would be fined Rs 10,000 if there is a cash-out at any ATM for more than 10 hours in a month.

“There are certain locations where ATMs run out of cash within hours of being loaded. These machines may not become feasible to operate if there is a penalty every month,” said a senior executive in an MSP firm. There are 2,13,766 ATMs in the country, and most of them are managed by MSPs who appoint cash-in-transit companies to replenish the currency notes in the machines.

According to MSPs, the regulations are well-intentioned as they recognise the role of cash in the economy and put the onus on banks to ensure cash availability. However, they say that the penalty is not well thought out because banks outsource most of the work and treat the regulations as something to be passed through to the MSPs.

“While the intent behind this RBI circular is welcome, penalty approach alone is unlikely to resolve the issue of ATM currency outage. In fact, it is quite likely that this penalty will become a pass-through, from banks to MSPs, and from MSPs to cash logistics agencies,” said Rituraj Sinha, group managing director at SIS, the largest security and cash-in-transit company in India.

According to Sinha, what needs to be addressed is the root causes of ATMs running dry, such as sub-optimal cash forecasting and delays in availability of ATM-fit currency.

“On-ground implementation of the RBI circular dated April 2018 is the real solution, not just before better security but also more accurate cash forecasting and on-time availability of currency to enable cash logistics agencies to upload ATMs on time and with an adequate amount of currency,” he said.

The 2018 circular requires banks to put in place stringent measures such as transporting cash in cassettes, in prescribed vehicles sticking to government norms on the transport of currency during specified hours of the day.

According to banks, it is difficult to implement all these norms under present cost structures.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

Yes Bank seeks partners for asset recast company, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


MUMBAI: Yes Bank has invited bids from potential partners for a proposed asset reconstruction company that will undertake recovery of bad loans. Management consultancy firm Ernst & Young is assisting the bank in the process.

In an advertisement on Wednesday, the private bank invited applications from investors with assets under management of at least $5 billion and possessing substantial experience in the distressed asset space. According to bankers, given the $5-billion assets under management eligibility criteria, it will be largely global distressed asset funds that will qualify.

Yes Bank had collapsed under the weight of bad debts in March 2020 and was placed under a moratorium by the RBI. Although Yes Bank was part of a consortium of lenders in most of the default cases, it was the worst hit because its exposure was disproportionate to its size and the bank had a presence in almost every major stressed asset. It was reconstructed through a government-notified scheme with banks led by SBI bringing in significant capital.

Given the complexity of recovering from large defaulters, Yes Bank’s new management had pursued setting up an asset reconstruction company from the time it took over in early April 2020. Addressing analysts in a post-results call last week, the bank’s MD & CEO Prashant Kumar said that it had made a cash recovery of Rs 5,000 crore last year, and the recoveries were much more than the provisions.

“The kind of effort that the engagement with those NPA customers which we have made during the last year — and which continued — I think would give us much better recoveries during the current fiscal year, and our recoveries would also result in significant gain on the P&L and there would not be any need to make any additional provision for this,” said Kumar.

The bank had total gross non-performing exposures of Rs 38,821 crore at the end of June 2021 as against Rs 39,034 crore in the previous quarter. “On the recovery side, our specialised stressed asset management team of about 100 professionals have demonstrated a significant track record of cash recoveries. He added that the team is divided into two parts — core resolution & recovery team, and support function. “We expect to have cash recoveries of Rs 5,000 crore in the current financial year,” said Kumar.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

Top 5 Banks Promising Good Returns On Tax Saving FDs To Both Regular & Senior Citizens

Personal Finance

[ad_1]

Read More/Less


Tax Saving FDs of Small Finance Banks

On tax-saving FDs, Ujjivan Small Finance Bank provides 6.75 percent interest. Jana Small Finance Bank and North East Small Finance Bank are the next two banks to provide 6.50 percent interest on tax saving fixed deposits. When compared to leading private and public sector banks, small finance banks offer higher interest rates on fixed deposits of both short term and long term. As a consequence, we’ve compiled a list of the top 5 small finance banks offering higher returns on tax-saving fixed deposits of less than Rs 2 Cr in 2021.

Sr No. Banks Regular FD Rates Senior Citizen FD Rates W.e.f.
1 Ujjivan Small Finance Bank 6.75% 7.25% 05.03.2021
2 Jana Small Finance Bank 6.50% 7.00% 07.05.2021
3 North East Small Finance Bank 6.50% 7.00% 19 April 2021
4 Fincare Small Finance Bank 6.25% 6.75% 29 July 2021
5 Equitas Small Finance Bank 6.25% 6.75% 1 June 2021
Source: Bank Websites

Tax Saving FDs of Private Sector Banks

Tax Saving FDs of Private Sector Banks

On tax saving fixed deposits, private sector banks are currently offering interest rates of up to 6.50 percent. DCB Bank, RBL Bank, for example, provides 6.50 percent interest on tax-saving deposits. These rates are much higher if we compare them against the interest rates of public sector banks. For both regular and senior citizens here we have picked up the top 5 private sector banks that are now promising higher interest rates on tax saving fixed deposits of less than Rs 2 Cr.

Sr No. Banks Regular FD Rates Senior Citizen FD Rates W.e.f.
1 DCB Bank 6.50% 7.00% 15 May 2021
2 RBL Bank 6.50% 7.00% July 2, 2021
3 Yes Bank 6.25% 7.00% 5 August 2021
4 IndusInd Bank 6.00% 6.50% 23 July 2021
5 IDFC First Bank 5.75% 6.25% May 1, 2021
Source: Bank Websites

Tax Saving FDs of Public Sector Banks

Tax Saving FDs of Public Sector Banks

Among public sector banks, Union Bank of India and Canara Bank are now promising higher interest rates of 5.50% on tax saving fixed deposits. For a deposit amount of less than Rs 2 Cr, here we have picked up the top 5 public sector banks which are now offering good returns on tax saving fixed deposits of 5 years.

Sr No. Banks Regular FD Rates Senior Citizen FD Rates W.e.f.
1 Union Bank of India 5.50% 6.00% 09.07.2021
2 State Bank of India 5.30% 5.80% 08.01.2021
3 Punjab & Sind Bank 5.30% 5.80% 16.05.2021
4 Canara Bank 5.25% 5.75% 09.08.2021
5 Bank of Baroda 5.25% 5.75% 16.11.2020
Source: Bank Websites



[ad_2]

CLICK HERE TO APPLY

Leave a comment

After A Rs 2,000 Drop in 5-Days, Gold Prices Are Unlikely To Fall Sharply

Personal Finance

[ad_1]

Read More/Less


Spot gold prices 22 karats in select cities, Aug 12

City 22 karats (approximate)
Mumbai Rs 45,450
Bangalore Rs 43,500
Delhi Rs 45,750
Chennai Rs 44,000
Kolkata Rs 45,950
Kerala Rs 43,600

(The gold prices mentioned are approximate, as prices fluctuate and hence investors should check with their local jewellers for accurate prices)

Gold begins trending higher

Gold begins trending higher

To begin with, we must understand that Indian imports gold and we must look for external factors that move gold, which leads to higher gold prices in India.

On Aug 12, gold prices rallied across the globe as US consumer price inflation data came in on lines as expected. US inflation is an important data point for gold, as it leads to gold prices going higher or lower. When inflation goes higher, the US Federal Reserve would be forced to hike interest rates, if CPI persists, which pushes bond prices higher.

When bond prices go higher, it leads to a fall in gold prices, as investors seek shelter in the higher yielding bonds. The second big factor that could happen in the future is that the US Federal Reserve could reduce its bond buying programme, which would suck money from the system and lead to a fall in gold prices. However, we tell you later whether that could play out.

“Technically, Gold bulls are stabilizing the market after prices hit a more-then-four-month low on Monday. The gold bears still have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at this week’s low of $1,676.40. First resistance is seen at this week’s high of $1,763.00 and then at $1,775.00. First support is seen at today’s low of $1,724.30 and then at Tuesday’s low of $1,716.50,” says Amit Khare, AVP- Research Commodities, Ganganagar Commodities, Limited

Why you can go ahead and buy gold now?

Why you can go ahead and buy gold now?

We believe that after a sharp drop of almost Rs 2,000 for 22 karats in the last 5-days, gold prices are unlikely to fall sharply. The globe is constantly plagued with worries over a new corona virus and inflation may also have peaked in the United States. However, what would be the single biggest factor for gold going ahead would be the Jackson Hole meeting later this month, where the US Fed Chair Person may provide some hints on whether the US would announce a gradual withdrawal of its tapering plans. If that happens we could see fresh pressure on gold. If no such announcement is made, gold would continue to move in a tight range, and the probability of it going higher from here is a possibility.

Disclaimer

Disclaimer

Investing in gold poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage houses are not liable for any losses caused as a result of decisions based on the article.



[ad_2]

CLICK HERE TO APPLY

Leave a comment
1 … 470 471 472 473 474 … 16,278